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Edited version of private advice
Authorisation Number: 1052047061743
Date of advice: 21 October 2022
Ruling
Subject: CGT - deceased estates
Question
Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the property and disregard the capital gain or loss you made on the disposal?
Answer
Yes.
Having considered your circumstances and the relevant factors the Commissioner will allow an extension of time. Further information about the Commissioner's discretion can be found by searching ato.gov.au for 'QC 66057'.
This ruling applies for the following period:
Year ending 30 June 20xx
The scheme commences on:
xx February 20xx
Relevant facts and circumstances
The deceased passed away on xx/xx/xxxx.
The deceased acquired an interest in the property before 20 September 1985 and another interest in the property after 20 September 1985.
The property is less than 2 hectares in area.
The property was the main residence of the deceased throughout their ownership period.
The property has never been used to produce assessable income.
Probate was granted on xx March 20xx.
In August 20xx, one of the children of the deceased suffered a stroke resulting in their acquiring disabilities that require ongoing care. The attention of the executors, who are also children of the deceased, was diverted to providing care for their sibling.
From early 2020, a series of lockdowns and restrictions was put in place by the State Government to combat the spread of CoVid 19. These restrictions impacted on the ability of the executors to deal with removing the personal belongings of the deceased from the property so that it could be prepared for sale.
Restrictions on real estate activities, imposed by the State Government to combat CoVid 19, impacted the ability of the executors to sell the property.
You entered into a contract to sell the property on xx/xx/xxxx with settlement occurring on xx/xx/xxxx.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195